- The first and most significant factor in calculating an individual’s credit score is their payment history. Your payment history is the payments you have been making on the credits you have availed. Late and delayed payments will affect your payment history negatively. The overall impact of this factor is 35% on your credit score.
- Unpaid debts are the second most important component of your credit score. They make up 30% of the credit score and are a measure of how much credit you have used from what’s available to you. The more debt you have on you the more negatively it will affect your credit score.
- This one might be less significant than your payment history and owed debts, but it also accounts for 15% of your credit score, which is not ignorable in any way. It’s your credit history i.e. how much record is available on your credit profile. More history means better score.
- The second last component of your credit score is credit types. They are 10% of your credit score. It is a measure of how many different types of credits you have applied for and are using. Credit bureaus encourage you to apply for different types of credit rather than focusing on only one type.
- Inquiries into your credit are the last component of your credit score and make up 10% of it.
Source: Credit Repair in San Antonio